Uganda’s oil and gas sector is rapidly approaching a historic milestone, with first oil expected within the next year, according to the Petroleum Authority of Uganda (PAU). The sector is already transforming the national economy, generating tens of thousands of jobs and boosting local participation in the industry.
Speaking on NBS TV, PAU Executive Director Ernest Rubondo highlighted that progress on key projects demonstrates Uganda’s readiness for first oil. “The Kingfisher project is approximately 75% complete, Tilenga is about 60% complete, and the East African Crude Oil Pipeline (EACOP) stands at 74%,” he said. These projects form the backbone of Uganda’s crude oil production and export infrastructure, with first oil expected to flow in 2026.
Rubondo also emphasised the development of a domestic oil refinery, which will add value to Uganda’s crude oil and provide refined petroleum products for local consumption. “Key focus areas for the Authority in the next decade include developing and strengthening its capacity to regulate new areas that Uganda has not previously experienced. These areas include the production and transportation of crude oil and gas, as well as the development and operation of a crude oil refinery,” he stated.
The sector has become a major driver of employment, with nearly 20,000 Ugandans directly employed and over 180,000 benefiting from indirect and induced opportunities. Rubondo noted the quality of local participation: “Ugandans continue to lead—holding 64% of management roles, 85% of technical positions, and an outstanding 99% of support jobs. This demonstrates a strong, deliberate commitment to empowering national talent across all skill levels.”
PAU has also actively promoted local content, ensuring Ugandan companies benefit from industry contracts. “Out of over US$7 billion of contracts submitted by the licensed oil companies and approved by the PAU to date, over US$2.2 billion have been awarded to Ugandan companies,” Rubondo said. He added, “No other sector in Uganda’s economy has advanced national content development as extensively as the oil and gas industry.”
Beyond jobs and local participation, the Authority has worked to build institutional capacity and regulatory frameworks. “As the PAU celebrates its 10th anniversary this year, the Authority has achieved three key milestones: building its institutional capacity from zero staff in 2015 to 220 today, establishing a robust regulatory framework to manage investments and oil and gas resources, and forming strategic partnerships both nationally and internationally,” Rubondo explained.
On the issue of balancing energy needs with climate concerns, Rubondo emphasised pragmatism: “When considering climate issues, it is essential to strike a balance between addressing the climate crisis and meeting global energy needs. Research indicates that oil and gas will remain necessary for at least the next 50 years.”
With the first oil drawing near, Uganda’s oil and gas sector is poised to generate lasting economic benefits, create thousands of jobs, and strengthen local industry through deliberate national content policies. As Rubondo concluded, “The new oil and gas policy places regulation of the entire petroleum value chain under a single regulator. As a result, the Petroleum Authority of Uganda will now regulate downstream activities, including operations such as petrol stations, among others.”